ESMA Letter On Third Country Regimes
The European Securities and Markets Authority has written to the European Commission in relation to additional issues concerning some MiFID II/MiFIR requirements on investor protection and intermediaries.
— Virginie O'Shea (@virginieoshea) October 1, 2018
The letter is a follow-up to an earlier letter concerning some MIFID II/MIFIR requirements regarding trading venues.
The letter highlights a number of items, which are relevant in the context of the United Kingdom’s withdrawal from the European Union, in particular:
- Concerns regarding the MiFIR regime for third country firms providing investment services and activities to eligible counterparties and per se professional clients;
- Concerns regarding the MiFID II regime for third country firms providing investment services and activities to retail and professional clients on request;
- Third country firms providing investment services and activities at the exclusive initiative of EU clients (reverse solicitation); and
- Investment firms outsourcing critical or important functions other than those related to portfolio management to third country providers.
European firms could operate temporarily in the UK after Brexit while seeking full authorisation.
The total value of UK financial services exports remained stable in 2020.
Temporary equivalence was set to expire on June 30, 2022.
The Bank has new powers for reviewing CCPs following Brexit.
Restricting access to London CCPs would result in collateral damage for EU banks and end users.